[Update] Don Mattrick Joining Zynga As CEO

Update #2: Game Informer has been provided with the text of an internal email sent from Microsoft CEO Steve Ballmer to all company employes. Interestingly, there is no replacement and Steve Ballmer's note about handling the day-to-day business does not sound temporary.

Zynga announced today that Don Mattrick would be its new CEO, effective July 8. This is a great opportunity for Don, and I wish him success. Don’s directs will report to me and will continue to drive the day-to-day business as a team, particularly focused on shipping Xbox One this holiday.

Since joining IEB more than six years ago, Don and his team have accomplished much. Xbox Live members grew from 6 million to 48 million. Xbox 360 became the No. 1 selling console in North America the past two years. We introduced Kinect and have sold more than 24 million sensors. We released fantastic games, and, most importantly, we expanded Xbox to go beyond great gaming to deliver all the entertainment people want — sports, music, movies, live television and much more.

In the past month, the IEB team showed for the first time here on our Redmond campus, and again at E3, how we are going to continue to transform entertainment with Xbox One. I am incredibly proud of the work and vision culminating in Xbox One.

I’m particularly excited about how Xbox pushes forward our devices and services transformation by bringing together the best of Microsoft. The consoles are incredible all-in-one devices with built-in services that consumers love, including Bing, Xbox Live, Internet Explorer, SkyDrive and Skype. And, just as important, Xbox Games, Xbox Video, Xbox Music and SmartGlass light up Windows PCs, tablets and phones.

Thank you, Don, for setting us on a path to completely redefine the entertainment industry. The strong leadership team at IEB and their teams are well positioned to deliver the next-generation entertainment console, as well as transformative entertainment experiences, long into the future.

Steve

Update #1: Zynga has confirmed that Don Mattrick, now former president of Microsoft's interactive entertainment business, is coming aboard as the company's new CEO.

On Monday, Mattrick will take over the reigns as founder Mark Pincus abdicates that role, but remains as chariman of the board and chief product officer. Mattrick will report to the board, who approved his hiring unanimously. He and Pincus will be part of a new executive committee that will manage broader operations between board meetings.

Microsoft has not yet responded to our request for comment.

Original Story:

Since the Xbox One was announced in late May, buzz for the console has been mired with troubled communications. First there was the reversal on DRM and online connectivity. Last week saw the headset double step. And now, Don Mattrick, president of Microsoft's interactive entertainment business, is reportedly leaving to take a top position at Zynga.

All Things D is reporting that Mattrick's appointment could come as soon as the financial markets close today. Mattrick has been at the center of some of Microsoft's biggest Xbox One missteps, including suggesting that people who can't connect to the Internet purchase an Xbox 360 instead and that the Xbox One offers "thousands of dollars of value."

Zynga has seen its own exodus of personnel both before and after cutting 520 jobs last month. We've reached out to Microsoft and Zynga for comment. At the time of publication, Microsoft has yet to respond and Zynga declined to comment.

Our TakeIt's going to be impossible for Mattrick to shake the perception that his recent missteps are why he's leaving the Xbox One team. It would behoove Microsoft to put Phil Spencer (whom Andy Reiner and I interviewed at E3) forward as the face of Xbox One. Spencer is likable, a gamer, knows how to stay on message, and is adept at speaking with the media.

It's also known that Mattrick was champion of Kinect on the business side. With him possibly leaving, we're left to wonder if Microsoft is about to make one final reversal on mandatory Kinect (and thereby narrow the price gap with PlayStation 4).

Zynga seems like the right place for him. I don't mean that in a good way. Mattick seems like a nice guy and all, but he also seems like a secret evil villain, and we all know Zynga is a secret (or maybe not even secret) evil company.

Oh, yeah. That guy. Yeah, some of the stuff he's said about the XBox One didn't exactly instill confidence. I'm not a big fan and I do wonder if that is the reason why he is leaving, but then again, I don't know all the facts, so he may be leaving for a completely different reason. The timing is a bit...coincidental, though...

BTW, this is the first "Our Take" I've read, and it's good. Not bad at all.

I wish Don Mattrick the best at Zanga and hopefully his knowledge of the causal gaming sector can turn that company around.

Mike, I disagree with you somewhat. Mr. Spencer would be a safe pick for president of interactive entertainment at Microsoft, but I personally think Microsoft Studios Creative Director Ken Lobb would be the better pick for the position. His past track record at Nintendo of America and Namco Hometek and his gameography speaks volumes. Mr. Lobb also knows what it takes to compete in Japan, which is Microsofts weak spot. Mr. Spencer would be just another Mattrick with better public speaking skills.

EDIT: Just read your update to the article Mike. If it's true that Steve Ballmer is taking over the reins of the interactive entertainment side of the business, then I don't see good thing for the Xbox brand in the future. In my personal opinion Steve Ballmer is an incompetent boob that is fully responsible for all of Microsoft's missteps - Xbox One DRM and backtracking on DRM, Windows 8 and poor Surface and Windows Phone sales. Mr. Ballmer should have been fired long ago.

Hmmm... it might be that he didn't like he was being pushed to change the policies he really wanted to go for. He might have come off as arrogant and elitist but at least he had a vision for the XB1. I knew what he was going for (focus on multiplayer and AAA gaming) and it was pretty damn exciting that one of major players was thinking about making a change and actually trying to differentiate from the other.

But of course, the pre-order numbers probably didn't look very good and an opportunity for him to be CEO of a company came his way. I wish him luck. The greatest leaps forward in tech came from taking risks and in that way, I can respect that he tried to do something different... even if it was difficult to swallow. I just don't think Microsoft did enough to gain the trust of consumers before changing so much.

"It's going to be impossible for Mattrick to shake the perception that his recent missteps are why he's leaving the Xbox One team." well....DUH!

Mattrick's main flaw was the same for many CEOs of a major cooperation... ARROGANCE!

First he allowed his company to be transparent...Sony knew well in advance what the Xboxone's stance was going to be at E3 and had months to prepare.

Second, he did't pay attention...Sony quietly dropped inclusion of the EYE as part of their package which SHOULD have alerted Mattrick that there was going to be a price drop in the cost of the PS4. It was announced but oh so quietly that it went under the radar.

Third, he listened to the so-called 'experts' who pointed to the PC market and said 'downloaded games is the FUTURE' of gaming so why not get in at the ground floor so you can be positioned to clean up with 'cloud' gaming. So he got Microsoft to make a major investment in these 'cloud' servers and now (at least for the moment) they are going to sit idle.

Lastly, he saw the XBox as the CENTER of the at home entertainment system and forgot that it is a GAMING system first and foremost. Hell I forgot that my original xbox and the 360 were DVD players until someone reminded me of it.

All of this is due to the total ARROGANCE of those at the top of Microsoft and it ended up biting them in the ass, big time.